patersons new report - 10.8c valuation, page-31

My friends tell me not to post algorithms on HC, because either other traders will use them to buy when they should, instead of when they shouldn't or someone will tell you their wrong because they're not like the ones they read about in a book.

The reason why they don't look like your valuation algorithms you read about on the Internet is because they are not for valuation. I'm sorry if my post were not clear, I typically take a lot of assumptions.

First one you quoted was just to measure the lowest an option market value can be in comparison to market vale of the target stock. This is used to prove options are more volatile and in this case, more desirable if you feel that vmg will get close to the fair value.

My second algorithm is again not a valuation, but is used by myself to get a snapshot of the forecast people subconsciously provide when they choose to buy or sell the options at. Yes you will notice that days was mentioned here. I graph the values n over time and I use this often as the first thing I look at for a list of watchlist options. If it looks interesting, I read up on the ASX announcements, check out HC and also run it through other excel tabs.

If you don't agree with my methods that's fine. I'm not proclaiming my way is the best. But please don't blatantly misunderstand me and then call me totally incorrect.